Forex Today: US jobs data lead focus as Midterms fallout lingers

Five-week lows were briefly tested by the US Dollar (USD) on Wednesday. The currency remained broadly under pressure as market participants weighed the Democrats’ stunning US midterm election victory.

After falling to within pips of the 101.00 support zone, the US Dollar Index (DXY) attempted a subdued rebound. The data calendar includes the regular weekly Initial Jobless Claims report and Challenger Job Cuts.

Broad-based US Dollar weakness helped EUR/USD extend its recovery this week, with the pair testing multi-week highs around 1.1270. Scheduled releases include the S&P Global Construction PMI for Germany and the Eurozone, followed by German Factory Orders and Producer Prices for the wider euro area.

A brief break above 1.3500, the first since mid-September, accompanied GBP/USD’s sixth straight daily gain. At its upcoming meeting, the BoE is expected to lift its policy rate to 4.00%. The only notable data release will be the S&P Global Construction PMI.

Another failed attempt around 158.80 left USD/JPY modestly lower, reversing two consecutive daily gains. Upcoming releases comprise the final S&P Global Services PMI, the BoJ Minutes and a 10-Year JGB Auction. 

A rebound from around three-week lows took AUD/USD back above the key 0.7000 level, though only marginally. Australia’s next scheduled releases are the final Building Permits and Private House Approvals figures on November 9.

Three-week lows near $91.00 per barrel came into focus as front-month WTI futures (December contract) extended this week’s correction. Following the Democrats’ US midterm election win, traders continued to weigh the likelihood of a possible end to the US-Iran crisis.

Back above the key $4,000 per troy ounce threshold, Gold also reached fresh four-day highs. The advance reflected a sharp US Dollar sell-off and lower US Treasury yields across the curve.